Real Estate Regulation Law In The Sultanate Of Oman (79/2025): Towards Sustainable Real Estate Governance

The real estate sector in the Sultanate of Oman has witnessed rapid development over the past two decades, driven by the country's urban and investment growth, particularly in light of the strategic directions of Oman Vision 2040, which seeks to achieve economic diversification and balanced sustainable urban development.

Within this developmental context, the need emerged for a unified piece of legislation to regulate the various aspects related to real estate affairs, in line with the requirements of the current stage, and to address the legislative fragmentation resulting from the multiplicity of real estate laws in force since the 1980s.

In response to this necessity, Royal Decree No. (79/2025) promulgating the Real Estate Regulation Law was issued. This law constitutes a qualitative legislative step that consolidated previously scattered legal rules into an integrated framework governing real estate registration, development, brokerage, and ownership. It also strengthens oversight over real estate market activities, thereby achieving transparency between the purchaser, the developer, and the competent ministry, with the aim of creating a real estate environment that is attractive to both local and foreign buyers.

The issuance of this law was not an isolated legislative development; rather, it was the result of a long trajectory of dispersed real estate regulations issued by the Omani legislator over the past decades, in an effort to build an integrated legal system governing all aspects of real estate activity. The Land Law issued under Royal Decree No. (5/80) formed the basic framework regulating the relationship between the state and individuals concerning land grants and ownership. This was followed by the Real Estate Brokerage Regulation Law No. (78/86), which set the legal controls for the practice of real estate brokerage. Thereafter came the System for Ownership of Apartments and Floors issued under Royal Decree No. (48/89), which established the rules of joint ownership, followed by the Real Estate Registration System No. (2/98), which laid down the principles governing the documentation and proof of real rights.

A close analytical reading of the new law reveals that the Omani legislator has adopted a balanced approach that reconciles the requirements of urban development with the demands of legal protection of property. The law does not merely regulate procedures; it also enshrines the principles of real estate governance and institutional oversight to ensure fairness in the Omani real estate market.

One of the key substantive aspects introduced by the new law is the repeal of the Real Estate Brokerage Regulation Law issued under Royal Decree No. (78/86), the System for Ownership of Apartments and Floors issued under Royal Decree No. (48/89), and the Escrow Account System for Real Estate Development Projects issued under Royal Decree No. (30/2018). The new law confers full regulatory and supervisory authority on the Ministry of Housing and Urban Planning, granting it judicial enforcement powers to monitor violations and verify compliance with the law and its executive bylaws. This step represents an important legislative development that enhances the Ministry's ability to exercise effective oversight over the real estate market and enables it to perform its regulatory and executive roles with greater efficiency, in accordance with its competencies under Royal Decree No. (93/2020). It supervises licensing procedures, monitors the activities of developers and real estate brokers, and oversees escrow accounts and real estate projects under construction, ensuring transparency and stability within the sector.

The law also imposes several obligations on real estate developers, most notably obtaining a prior license before initiating any development project, establishing an independent escrow account in the name of the project into which buyers' payments must be deposited, and restricting withdrawals from this account according to approved construction phases. In addition, the law obligates the developer to provide the necessary financial guarantees to ensure completion of the project within the prescribed timelines, to register all contracts and agreements relating to the project in the real estate register, and to submit periodic disclosures to the competent authority. The law further mandates that developers register all subdivided units in off-plan sale projects, along with all dispositions executed prior to the law's entry into force, within a period of six (6) months from the effective date of the law. Through these provisions, the legislator aims to strengthen purchaser protection, ensure developer compliance, and promote the sustainability of real estate projects, thereby reinforcing the legal and regulatory character of the real estate market.

With respect to the regulation of real estate professions, the law requires any person engaged in real estate brokerage or marketing to obtain an official license issued by the Ministry of Housing and Urban Planning and to comply with the approved legal and professional standards, including adherence to principles of integrity, transparency, and the protection of clients' interests. It also mandates compulsory registration in the national register of workers in the real estate sector and imposes administrative and criminal penalties on violators, which may include monetary fines and license revocation. Through these measures, the real estate brokerage sector is placed under effective institutional supervision, ensuring the professionalism and competence of brokers, enhancing the protection of parties to transactions, and safeguarding the integrity of the real estate market.

Regarding owners' associations, the new law addresses the regulation of owners' associations in jointly owned properties and multi-unit developments. It requires the establishment of an owners' association for each project, responsible for managing common areas, maintaining facilities, and representing owners before official authorities. The law grants these associations legal personality and financial and administrative independence, while placing them under the Ministry's supervision to ensure proper governance and transparent accounting. These provisions represent an important legislative development that strengthens the principle of collective management of jointly owned properties, preserves the long-term value of such developments, ensures their sustainability, and protects the rights of all owners and beneficiaries.

In conclusion, the Real Estate Regulation Law issued under Royal Decree No. (79/2025) represents a pivotal legislative milestone in the Sultanate of Oman. It regulates the real estate market, protects rights, enhances transparency, and ensures the sustainability of projects. The law underscores institutional governance and effective oversight by granting the Ministry of Housing and the relevant authorities regulatory and enforcement powers, while obligating developers and brokers to adhere to professional standards and establishing owners' associations to manage jointly owned properties. The law, which enters into force on 10 March 2026, constitutes a comprehensive framework that strengthens investor confidence, stabilizes the real estate market, and aligns with the sustainable urban development objectives of Oman Vision 2040.

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